General information

Being a relatively new coin, Polkadot is considered an up-and-coming coin in the crypto market. Polkadot (DOT) is the native token of the Polkadot network.

It was developed by British programmer Gavin Wood, who is the co-founder of Ethereum. The first version of the platform was created in 2016. However, it was finally launched only in 2020.

Main advantages of Polkadot:

1. Scalability: the platform works with a standard set of validators. Therefore, it is able to withstand heavy platform traffic and empowers blockchain networks to run smoothly;
2. Compatibility: Polkadot is based on an algorithm that allows users to connect to other blockchain chains;
3. Security: it applies to all blockchains that Polkadot works with;
4. Polkadot enables blockchains to upgrade themselves without the need to fork the chain.

DOT Peculiarities

DOT holders maintain the operation of the entire Polkadot network. At the same time, they have a number of advantages:

• holders can control the network, while in the case of other cryptocurrencies, only miners have such a privilege. By acquiring DOT, the holder automatically gets the right to vote: for example, when it comes to the platform upgrade;
• holders can earn additional profit thanks to stacking.

It is impossible to mine Polkadot. To get new tokens, you need to purchase a certain amount of DOT and store them for stacking.

Polkadot outlook

The DOT token demonstrated a meteoric rise in 2021. If in August 2020, the cryptocurrency was trading at a low of $2.70, in November 2021, it reached a high of $54.90.

The market capitalization of Polkadot exceeds $7.5 billion, cementing 11th place in the ranking of all digital currencies.

Analysts are confident that DOT has bright prospects. Some of them assume that the token will eventually overshadow Ethereum.

It may spike following the web decentralization of the network. It will enhance blockchain interoperability allowing different blockchain protocols to communicate with each other.